Budget 2022-23 focusses on climate change, talks of transition to ‘carbon neutral’ economy | Details

Union Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2022-23 wherein she announced that Rs. 19,500 crore for production linked incentives for manufacturing of high efficiency modules. She stressed that Public investment must continue to take the lead and pump the private investment and demand in 2022-23 and therefore the outlay for capital expenditure in the Union Budget is being stepped up sharply by 35.4 per cent from Rs 5.54 lakh crore in the current year to Rs 7.50 lakh crore in 2022-23.

This has increased to more than 2.2 times the expenditure of 2019-20 and this outlay in 2022-23 will be 2.9 per cent of GDP. With this investment taken together with the provision made for creation of capital assets through Grants-in-Aid to States, the ‘Effective Capital Expenditure’ of the Central Government is estimated at Rs 10.68 lakh crore in 2022-23, which will be about 4.1 per cent of GDP. 

In the Economic Survey presented by Union Finance Minister Nirmala Sitharaman on Monday, she said that climate finance will remain critical to successful climate action by developing countries, including India.

As a part of the government’s overall market borrowings in 2022-23, sovereign Green Bonds will be issued for mobilizing resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.

The Government proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23 for more efficient and cheaper currency management system.

Also Read: Budget 2022: Experts question Centre push to set up 200 TV channels for classes 1-12

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